Saudi Arabia purchased 800,000 tons of wheat at a tender for $10-15/ton more than in January

The General Authority for Food Security of Saudi Arabia (GFSA) last week held a tender to purchase 655 thousand tons of durum wheat of any origin with a protein of 12.5%, in which it purchased about 794 thousand tons at a significantly higher price than in January.

According to traders, wheat will be supplied mainly from the Russian Federation and Romania, although the tender offered wheat from the EU countries, the Black Sea region, North and South America, and Australia.

The prices of purchased wheat depended on the delivery times:

• in May, Solaris, OZK Group, Ameropa and Aston companies are to deliver 307 thousand tons of wheat at an average price of $269.44/ton C&F ports of Jeddah and Yanbu,
• In June, Russian companies Aston and Holagri are to deliver 374 thousand tons of wheat at an average price of $275.92/ton C&F the ports of Jizan, Dammam, and Yanbu.
• In July, Russian companies Solaris and Cerealcom are to supply 120,000 tons of wheat at an average price of $270.53/ton C&F port of Jeddah.

Recall that in the previous tender in January, Saudi Arabia purchased about 907 thousand tons of wheat at an average price of $260.91/ton C&F for delivery from April to May, and last year it purchased a large batch of wheat at an average price of $276.37/ton C&F.

The purchase price of new crop wheat turned out to be $5/t lower than that of old crop wheat with delivery in June, as the Russian Federation plans to harvest a large harvest, and traders have already begun to actively sell it.